Apollo Global and Schroders: Strategic Synergy in Alternative Asset Management

The private markets are undergoing a profound transformation, driven by shifting investor demand, technological innovation, and the relentless search for yield in a low-interest-rate world. At the heart of this evolution lies a growing emphasis on cross-industry collaboration, as traditional asset managers and alternative investment firms seek to combine their strengths to unlock value. Nowhere is this trend more evident than in the emerging partnership between Apollo Global Management and Schroders, two firms poised to redefine the contours of alternative asset management through strategic alignment.

The Strategic Imperative for Collaboration

Schroders, the UK's largest standalone money manager, is in early talks with Apollo to form a product partnership that could see the latter sourcing assets for the formerApollo in Talks for Private Markets Partnership With Schroders^[1]. This initiative aligns with Schroders' broader turnaround strategy under CEO Richard Oldfield, which prioritizes expanding its private markets offerings. The firm has already divested non-core segments of its alternatives business to focus on high-growth areas such as securitized credit, renewable energy infrastructure, and logistics real estate2025 Private Markets Outlook^[2]. By 2027, Schroders aims to secure £20 billion in cumulative net new business (NNB), a target that hinges on accessing Apollo's deep expertise in private capitalApollo Global Management: Strategic Shifts, M&A, and Global Wealth Expansion^[4].

Apollo, with $840 billion in assets under management as of June 2025Apollo in Talks for Private Markets Partnership With Schroders^[1], brings a complementary strength: a proven ability to scale private market opportunities. Its recent partnerships with firms like InvestCloud and Trade Republic—aimed at democratizing access to private assets through digital platforms—demonstrate its commitment to innovationApollo Global Management: Strategic Expansion and Market …^[3]. For Apollo, a collaboration with Schroders would extend its reach into institutional and retail markets, leveraging the latter's global distribution network and client base.

Industry Trends Fueling the Synergy

The potential partnership emerges against a backdrop of robust growth in private markets. According to S&P Global, capital inflows into AI-focused private investments surged by 70% year-over-year in 2024, while private credit assets are projected to hit $3 trillion by 2028Apollo in Talks for Private Markets Partnership With Schroders^[1]. These trends reflect a broader shift as investors seek alternatives to volatile public markets. BlackRock's 2025 outlook further underscores this momentum, forecasting that private markets assets under management could exceed $20 trillion by 20302025 Private Markets Outlook^[2].

For Schroders, the collaboration with Apollo would address a critical challenge: scaling its alternatives business while maintaining liquidity for investors. The firm's allocation of £500 million for seed and co-investment, alongside a dedicated sales team of 40 specialists2025 Private Markets Outlook^[2], signals its intent to capitalize on these trends. Apollo's role in sourcing assets—particularly in sectors like venture capital and SME buyouts—could accelerate Schroders' ability to meet its NNB targets.

Risks and Opportunities

While the partnership remains in early stages, its success will depend on aligning operational cultures and navigating regulatory complexities. Apollo's history of forming alliances—such as its collaboration with Phoenix Group to deploy private assets for British pensionersApollo in Talks for Private Markets Partnership With Schroders^[1]—suggests a capacity to integrate diverse stakeholders. However, the private markets' inherent illiquidity and valuation challenges require careful structuring to ensure transparency and risk mitigation.

A key opportunity lies in leveraging technology. Apollo's Lyra Client Solutions, a fintech venture focused on data-driven client servicesApollo Global Management: Strategic Shifts, M&A, and Global Wealth Expansion^[4], could enhance Schroders' ability to offer personalized investment solutions. Meanwhile, Schroders' expertise in long-term capital management—particularly through its partnerships with insurance companies and banks2025 Private Markets Outlook^[2]—could provide Apollo with stable funding sources for its private credit and infrastructure initiatives.

Conclusion

The potential collaboration between Apollo and Schroders exemplifies the power of cross-industry synergy in private markets. By combining Apollo's asset-sourcing prowess with Schroders' strategic focus on high-growth alternatives, the partnership could create a blueprint for how traditional and alternative managers navigate the evolving investment landscape. As the private markets continue to mature, such alliances will likely become a defining feature of the sector—a testament to the enduring value of collaboration in an era of relentless innovation.